AppLovin Stock: Time To Trim

(9min)

Summary

  • AppLovin's stock has surged due to AI advancements, but current prices seem too high, suggesting a "Hold" rating and trimming positions.
  • The company's Software Platform, driven by AXON technology, is the main growth engine, with significant revenue and EBITDA increases.
  • Despite strong financials and growth potential, market optimism leaves no room for errors, making the stock appear overvalued by 33% for next year.
  • Market weakness could trigger a correction; hence, it's prudent to trim and wait for a potential dip to reinvest.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

AI Bubble: The Rise and Speculation of Artificial Intelligence

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My Thesis

AppLovin Corporation (NASDAQ:APP) is a mobile app development firm, whose software solutions offerings help mobile app developers scale their business by automating and optimizing the marketing and monetization of their apps.

Over

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This article was written by

Oakoff Investments profile picture
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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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